Estate planning involves organizing how your assets will be distributed upon your death. You can also use certain estate planning instruments to nominate a guardian for minor children, fund their college tuition and much more.
In short, estate planning is very important. Yet, some studies suggest that over half of Americans have no estate plan. Why is this?
Superstition
Nobody relishes the prospect of having to talk about their own death, but that is part of the estate planning process. Many people view this as morbid, depressing and even a jinx to their own life, but this is far from the case.
By not having an estate plan, you could end up worrying more. Your estate would be settled according to intestacy laws should you pass away, which means that your loved ones could go without.
Most people find it to be a relief when they first start talking about estate planning, and this is certainly the case after the relevant documents are drafted.
Cost of time and money
Estate planning can seem complex from the outside. There are also certain costs involved. Nonetheless, if you are clear about what you want, it doesn’t take that long to put a plan together and the costs can be minimal.
Without an estate plan, your assets could be taxed heavily, so you’ll end up losing more money long-term. It can also take years to settle will contests and other disputes, and none of this comes cheaply.
One way to make estate planning feel less intimidating is to seek as much legal information as possible on the subject.